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layering/erasing

I've been using this for a good while now and the only thing I can't figure out is how to "erase" a portion of an element to give the illusion it is layered or wrapped/tucked behind another element or paper.

For instance I have a string that I want to look like is hooked through a loop of a tag. I know in photoshop there is a way to just erase that part of the element to make it look like it is hooked through. But I don't use pse anymore.

Any ideas out there? It may just not be available and if that's the case I will suggest it under suggestions.